Do you really need life insurance?

Life insurance is an emotional part of estate planning we might rather ignore. Many people feel the word “estate” is too large to encompass their assets. However, estate planning is a valuable process at any age or stage of life.

Even a single person will want to have a life insurance policy to cover outstanding debts and funeral expenses. By starting young, you only have to build on the foundation you’ve laid. –Michelle Ogborne

What is Life Insurance?

It is an investment in which you regularly deposit premium payments. When you die, your beneficiaries will receive the money in a lump sum or as payments over a period of time. You can designate how the money is used. Funeral expenses and future support of your spouse or children is customary.

The two types of life insurance include:

Term – This is for a specific duration. It pays out if you die during the period of time covered by the policy.

If you are retired, your mortgage is paid off, and your children are self-sufficient and living on their own.

When You Need Life Insurance

Should something unexpected happen to you, is there enough money to support your family? Many families insure stay-at-home parents. The cost to pay for childcare, cleaning, meal preparation, shopping, and transportation is stunningly high.

In addition to the loss of a loved one, your survivors may face financial instability. Relocating to a modest dwelling and uprooting your kids from their schools and friends is not something anyone wants. Life insurance can help avoid that.

You May Need Life Insurance if You…

Are a new family – Before you start a family, life insurance premiums may be at their lowest. With the right policy, those premium payments won’t rise.

Are young and single – Some singles don’t want their grieving parents to pay for funeral expenses. Other young adults are financially contributing to their parents’ care. If something happened, their parents would be emotionally distraught and possibly destitute.

Have a mortgage or debt – If your debt load is greater than your estate assets, your spouse or children could be responsible for them. Life insurance is one way to help pay off debts.

Have insurance at work – If you lose your job, you lose your life insurance. If you change jobs, you lose the money you’ve invested in your work life insurance plan. It’s a good idea to have a backup life insurance policy.

Ogborne Law Estate Planning Services

Insurance companies sell insurance, and they may tell you bigger is better. The legal professionals at Ogborne Law understand Arizona business law and estate planning. You’ll receive financial guidance customized for your situation. Life insurance may be part of your plan. Call or contact us to learn more.

Engaging with an attorney to protect your family is never an easy step. Whether you need to protect your family from the unthinkable or restructure your family through collaborative divorce, we’re here to help. When you’re ready to schedule a consultation with Michelle Ogborne, please visit the scheduling page to get started.

The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for advice regarding your individual situation. We invite you to contact us and welcome your calls, letters, and electronic mail. Contacting us does not create an attorney-client relationship. Please do not send any confidential information to us until such time as an attorney-client relationship has been established.